Another year, another London Bullion Market Association conference, and this year was full of what HSBC senior analyst James Steel described as “restrained optimism.” A similar description was given of the recent Denver Gold conference in Colorado Springs, where one fund manager summed the mood up as “veiled optimism.” But this didn’t stop an air of positivity buzzing on the sidelines of both events, with the mood jubilant, especially in Singapore this week. At least at face value.

The gold industry could be in for a wake-up call, and further liquidity squeeze, when potential new net stable fund requirements are passed at the start of 2018, sources close to the situation have been telling S&P Global Platts.

With Cheltenham races this week, everyone is in betting mood. It would appear that the cards could be stacked in IntercontinentalExchange’s favor, as the operator has come up as an outside favourite to possibly succeed the London Bullion Market Association ‘request for proposal’ to reform the London gold market.

Why? Because the other two rumored exchanges involved in the process — the London Metal Exchange and CME Group — have already been touted, maybe?

London’s streets were rumored to be paved with gold, once upon a time. Now they seem to be paved with chit-chat and hearsay regarding the future of the City’s bullion trade.

Now, not to repeat myself, but the London bullion market is currently in a state of transition. To what, exactly, is anyone’s guess. Over-the-counter to exchange, maybe, if the London Metal Exchange can get its hands on it.

The possibility of the London Bullion Market Association and World Gold Council collaborating more closely to promote the development of London gold trading seemed less of an alien concept this week than before, with some saying it would be in the best interests of London’s financial sector for the two to join forces.

The London bullion market could be moving closer to finding a solution to what it needs — in order to increase transparency and liquidity in the face of tighter regulation — with both the London Bullion Market Association and World Gold Council throwing their hats in the ring in order to seek out the best solution for the wider market.

The market has been rife with chatter lately regarding what solution is needed, although little agreement has been made. However, one thing is apparent: central clearing is a logical step forward.

The London bullion market is in a state of flux, with participants — ranging from bankers to brokers to exchanges — jostling to find out exactly what the other one wants in order for the market to evolve and fight off the increasing threat of business moving to Asia alongside mounting regulation.

The market is engaging behind closed doors to find out what it wants, but exactly what that is seems unclear to all involved.